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Liberty & Limited Government Archive

Tuesday

11

July 2006

0

COMMENTS

More On The Big Ripoff

Written by , Posted in Liberty & Limited Government

Timothy Carney, the author of The Big Ripoff: How Big Business and Big Government Steal Your Money, talks about “The Forgotten Man” at the CEI.

George H. Love had worked in a coal mine in his youth, but then went to Harvard Business School. By 1950, Love had pieced together a coal empire, combining a handful of coal companies into Pittsburgh Consolidated Coal Company, the world?s largest coal company. When Love sat down at the table he was representing not only his own coal giant, but all the big soft coal mine operators in the country.

Across from him was John L. Lewis. The son of Welsh immigrants, Lewis was working the mines by the age of 15. At 37 years old, he was the head of the United Mine Workers of America (UMW). He founded the Congress of Industrial Organizations, which is now the “CIO” of the AFL-CIO.

When the two hammered out an agreement giving Lewis almost everything he wanted on wages and hours, newspapers called it “submission” on the part of Love. As the agreement played out for the rest of the decade, it began to look like something else. A jury later it called it “a conspiracy.”

I highly suggest reading the entire article.

Tuesday

11

July 2006

0

COMMENTS

House Passes Bill On Online Gambling

Written by , Posted in Liberty & Limited Government

AP

The House passed legislation Tuesday that would prevent gamblers from using credit cards to bet online and could block access to gambling Web sites.

The legislation would clarify and update current law to spell out that most gambling is illegal online. But there would be exceptions – for state-run lotteries and horse racing – and passage isn’t a safe bet in the Senate, where Republican leaders have not considered the measure a high priority.

The House voted 317-93 for the bill, which would allow authorities to work with Internet providers to block access to gambling Web sites.

…Supporters of the measure argued that Internet betting can be addictive and can lead people to lose their savings.

Leach said the problem is particularly acute for young people who are frequently on the Internet. “Never before has it been so easy to lose so much money so quickly at such a young age,” he said.

Yes, people certainly could lose their savings, but only if they choose to risk their savings. It can’t happen by accident. This kind of nanny-state, protect-the-people-from-themselves logic is typical of the ideologies of big government. To see it used here by  conservatives is telling as to the nature of their beliefs. In the end, only 17 Republicans, self proclaimed believers in small government, stood up for personal freedom.

Tuesday

11

July 2006

0

COMMENTS

The Big Ripoff

Written by , Posted in Economics & the Economy, Liberty & Limited Government, Waste & Government Reform

The Competitive Enterprise Institute offers some excerpts from the book, The Big Ripoff: How Big Business and Big Government Steal Your Money

Some of the blood boiling examples:

. . .Hair braiders must take a 1,250 hour training course in “cosmetology” before they can legally braid hair in Philadelphia or anywhere else in the state. As a point of comparison, federal law requires pilots to log 40 hours of flight time before getting a license.

While the reason for the braiding regulation is hard to imagine, the harmful effects are clear. Hair braiding could be the ideal job for a black woman?either a mother re-entering the work force, or someone looking for a second job. In cities where the practice is fairly unregulated, such as Washington, D.C., the field provides exactly this opportunity. In Philly, the state has made it much harder to pursue this line of work. Of course, keeping the number of hair braiders low drives up the price for consumers?which is good news only for those who had the time and the resources to get their license. Once again, government has created a cartel, not only in Pennsylvania, but also in seventeen other states that require hair braiders to obtain training and licenses.

. . .In Louisiana, for example, florists can run afoul of the law if they practice floristry without a license. The state requires any would-be florist to pass a licensing exam. Who are the judges? They are currently practicing florists. The result: a majority of applicants fail. In short, the state has given current florists the power to keep potential competition out of the market. Only with the help of big government could the existing businesses maintain such an oligopoly. Such pro-incumbent-business regulations abound.

. . .If you have weeds on your property in Arizona, you should probably study the state code before trying to remove them. Paying your neighbor’s son to spray them with Weed-B-Gone or any standard over-the-counter weed-killer, probably violates the law. It’s illegal to do it yourself if you are a renter, but it’s also illegal for your landlord to spray. Maybe you know a gardener whom you could hire to do it? You’d better check that he has 3,000 hours worth of experience spraying weeds, otherwise the Arizona Structural Pest Control Commission (SPCC) may come after you both.

In many ways, capitalism can be its own worst enemy. Competition forces businesses to innovate, which is good, but others try to stack the deck in their favor. By itself that’s not so much of a problem, but when big government collaborates with businesses to stack the deck, it’s a threat to free markets that all of us must take seriously.

Saturday

1

July 2006

0

COMMENTS

Costs Of The Regulatory State

Written by , Posted in Liberty & Limited Government, Waste & Government Reform

The Competitive Enterprise Institute offers Ten Thousand Commandments: An Annual Snapshot of the Regulatory State.

Here are some of the highlights:

– Extrapolating from an assessment of the federal regulatory enterprise by economist Mark Crain, regulatory costs hit an estimated $1.13 trillion in 2005.

– Given that 2005 government spending was $2.47 trillion, the hidden tax of regulation now approaches half the size on federal spending itself.

– Regulatory costs are more than triple the $318 billion budget defi cit.

– Regulatory costs also exceed all corporate pre-tax profi ts, which were $874 billion in 2003.

– On the basis of estimates from the Weidenbaum Center and the Mercatus Center, agencies spent $38.3 billion merely to administer and police the regulatory state in 2005. Counting the $1.127 billion in off-budget costs, that brings the total regulatory burden to $1.165 billion.

Thursday

29

June 2006

0

COMMENTS

Congress Gets Report Card, Grounded For Two Years

Written by , Posted in Liberty & Limited Government

Alright, that last bit hasn’t happened yet. But it might if Republicans can’t get their act together before November.

In its third-quarter report card for Congress, Heritage found “improvement needed.”

As the 109th Congress draws closer to its conclusion, there is growing disappointment among many Members and voters over how little has been accom?plished since the 109th convened in February 2005. Federal budgets for fiscal years 2005 and 2006 were not completed until several months into the next fiscal year, the earmark epidemic has been linked to corruption, the much-maligned highway bill was enacted two years late (and gained nothing in quality from the delay), the new Medicare drug benefit plan will add more than $1 trillion to the federal budget over the next 10 years, and the financially shaky Social Security system remains untouched and unreformed.

The report offered the following grades:

Senate Spending: D
House Spending: D+
Senate Budget Process Reform: F
House Budget Process Reform: D
Senate Property Rights: D-
House Property Rights: A+
Senate Earmark Reform: C-
House Earmark Reform: D
Senate Social Security Reform: D-
House Social Security Reform: F
Senate Pension Reform: D
House Pendion Reform: B-
Senate Energy: F
House Energy: D
Senate Tax Rates: C-
House Tax Rates: B
Senate Tax Reform: C-
House Tax Reform: B
Senate Medicare: F
House Medicare: F
Senate Medicaid: C
House Medicaid: B-
Senate Health Care Reform: D
House Health Care Reform: F

Overall a miserable performance, check out the report for more details.